diff --git a/packages/cli/config/tsconfig.json b/packages/cli/config/tsconfig.json
index fb52420860..9f02bfcafe 100644
--- a/packages/cli/config/tsconfig.json
+++ b/packages/cli/config/tsconfig.json
@@ -1,17 +1,37 @@
 {
-  "extends": "@spotify/tsconfig",
-  "exclude": ["**/*.test.*"],
   "compilerOptions": {
     "allowJs": true,
-    "noEmit": false,
+    "declaration": true,
+    "declarationMap": false,
     "emitDeclarationOnly": true,
+    "esModuleInterop": true,
+    "experimentalDecorators": false,
+    "forceConsistentCasingInFileNames": true,
+    "importHelpers": false,
     "incremental": true,
-    "target": "ES2019",
+    "isolatedModules": false,
+    "jsx": "react",
+    "lib": ["DOM", "DOM.Iterable", "ScriptHost", "ES2019"],
     "module": "ESNext",
+    "moduleResolution": "node",
+    "noEmit": false,
+    "noFallthroughCasesInSwitch": true,
+    "noImplicitAny": true,
+    "noImplicitReturns": true,
+    "noImplicitThis": true,
+    "noUnusedLocals": true,
+    "noUnusedParameters": true,
+    "pretty": true,
     "removeComments": false,
     "resolveJsonModule": true,
-    "esModuleInterop": true,
-    "lib": ["DOM", "DOM.Iterable", "ScriptHost", "ES2019"],
+    "sourceMap": false,
+    "strict": true,
+    "strictBindCallApply": true,
+    "strictFunctionTypes": true,
+    "strictNullChecks": true,
+    "strictPropertyInitialization": true,
+    "stripInternal": true,
+    "target": "ES2019",
     "types": ["node", "jest"]
   }
 }
diff --git a/packages/cli/package.json b/packages/cli/package.json
index 13c0fd4aa3..20d9893a37 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -36,7 +36,6 @@
     "@rollup/plugin-json": "^4.0.2",
     "@rollup/plugin-node-resolve": "^7.1.1",
     "@spotify/eslint-config": "^7.0.1",
-    "@spotify/tsconfig": "^7.0.0",
     "@sucrase/webpack-loader": "^2.0.0",
     "bfj": "^7.0.2",
     "chalk": "^4.0.0",
diff --git a/tsconfig.json b/tsconfig.json
index 52cdd1e825..2b36617ad9 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -1,7 +1,6 @@
 {
   "extends": "@backstage/cli/config/tsconfig.json",
   "include": ["packages/*/src", "plugins/*/src", "plugins/*/dev"],
-  "exclude": ["**/node_modules"],
   "compilerOptions": {
     "outDir": "dist"
   }
diff --git a/yarn.lock b/yarn.lock
index 679f75cb36..74fba61f49 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2540,11 +2540,6 @@
   resolved "https://registry.npmjs.org/@spotify/prettier-config/-/prettier-config-7.0.0.tgz#47750979d1282197295108b6958360660a955c16"
   integrity sha512-lIMcx/2oDqTtW84iHKkRJe+8U6HK6GPwWH5sJp9UEHcDpdXomOQYvwcGXy2I2zwPQQ14gYYE6nEJuSnnYqsYRw==
 
-"@spotify/tsconfig@^7.0.0":
-  version "7.0.0"
-  resolved "https://registry.npmjs.org/@spotify/tsconfig/-/tsconfig-7.0.0.tgz#41c402f4eb6d3147bc18427a35205151cbb32cd5"
-  integrity sha512-MeRFUPMXWBSm6yaUWiESaQsF9B+9Rn1F/w5hbHHzcunc45teXBcgsOrJu1uDOEkhP/9lP0fefuodpP+TYWM1LQ==
-
 "@spotify/web-scripts-utils@^7.0.0":
   version "7.0.0"
   resolved "https://registry.npmjs.org/@spotify/web-scripts-utils/-/web-scripts-utils-7.0.0.tgz#8c6b8039fc645a36ac48629eb9ba06600f4d828a"